Preprints
https://doi.org/10.5194/egusphere-2023-1750
https://doi.org/10.5194/egusphere-2023-1750
04 Sep 2023
 | 04 Sep 2023

Driving sustainability transitions through financial tipping points

Nadia Ameli, Hugues Chenet, Max Falkenberg, Sumit Kothari, Jamie Rickman, and Francesco Lamperti

Abstract. Achieving a net-zero carbon economy requires significant structural changes in the financial system, including a substantial shift in investment towards low-carbon assets. Through the alignment of expectations, promotion of herding behavior, utilization of public finance, reduction of capital costs and attainment of low-carbon investment thresholds in developing nations, and implementation of robust financial regulations and policies, the financial system can assume a central role in re-orienting economies onto a net-zero course. Taken together, such mechanisms highlight the positive tipping points that can be triggered within sustainable finance and emphasize the necessity of policy interventions to activate and capitalize on these dynamics. The identification and activation of critical and positive tipping points can lead to the amplification of sustainable investments and foster transformative changes in the practices of the financial sector.

Publisher's note: Copernicus Publications remains neutral with regard to jurisdictional claims made in the text, published maps, institutional affiliations, or any other geographical representation in this preprint. The responsibility to include appropriate place names lies with the authors.
Nadia Ameli, Hugues Chenet, Max Falkenberg, Sumit Kothari, Jamie Rickman, and Francesco Lamperti

Status: final response (author comments only)

Comment types: AC – author | RC – referee | CC – community | EC – editor | CEC – chief editor | : Report abuse
  • RC1: 'Comment on egusphere-2023-1750', Charlotte Gardes, 03 Oct 2023
    • AC1: 'Reply on RC1', Francesco Lamperti, 02 Apr 2024
  • RC2: 'Comment on egusphere-2023-1750', Anonymous Referee #2, 25 Dec 2023
    • AC2: 'Reply on RC2', Francesco Lamperti, 02 Apr 2024
Nadia Ameli, Hugues Chenet, Max Falkenberg, Sumit Kothari, Jamie Rickman, and Francesco Lamperti
Nadia Ameli, Hugues Chenet, Max Falkenberg, Sumit Kothari, Jamie Rickman, and Francesco Lamperti

Viewed

Total article views: 526 (including HTML, PDF, and XML)
HTML PDF XML Total BibTeX EndNote
373 115 38 526 18 20
  • HTML: 373
  • PDF: 115
  • XML: 38
  • Total: 526
  • BibTeX: 18
  • EndNote: 20
Views and downloads (calculated since 04 Sep 2023)
Cumulative views and downloads (calculated since 04 Sep 2023)

Viewed (geographical distribution)

Total article views: 526 (including HTML, PDF, and XML) Thereof 526 with geography defined and 0 with unknown origin.
Country # Views %
  • 1
1
 
 
 
 
Latest update: 20 Jun 2024
Download
Short summary
Transitioning to a net-zero economy necessitates significant changes in the financial system. By promoting collective behavior, aligning expectations, using public finance, reducing capital costs and encouraging low-carbon investments, the financial system can play a crucial role in re-orienting economies onto a net-zero course. These mechanisms underscore the potential for positive tipping points in sustainable finance and stress the importance of policy interventions to capitalize on them.